Analisis Faktor-Faktor yang Memengaruhi Pertumbuhan Total Factor Productivity (TFP) Sektor Pertanian di Indonesia

Abstract

The agricultural sector is a sector which is crucial and has an important role for people life. Enhancement in agricultural productivity is the focus of the current Government. Previous research shows that the growth of agricultural output was not only influenced by the capital and labor but there is another factor called Total Factor Productivity (TFP). This research focuses on the factors that affect TFP growth of the agricultural sector in Indonesia in the period 1980-2011. This research using Cobb-Douglas linearization to calculate TFP value. Error Correction Model (ECM) used to analyze factors that affect agricultural TFP. Independent variables used in this model are irrigation, inflation rate, level of education, agricultural credit, and trade openness, while the dependent variable used is agricultural TFP. The results of this research indicate that the variables that affect agricultural TFP in the short-term are education and level of trade openness. Variables that affect agricultural TFP on long term are the level of education, agricultural credit, and trade openness.